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It is being alleged by a handful of current & former Bank of America employees that bonuses were paid to KEEP homeowners in foreclosure; even after they were successfully satisfying loan modification trial requirements.

Increasing your credit score by at least 100 points requires a bit of work, but it is definitely possible. There are four basic steps in order to accomplish significant gains in your credit score.

The first step is to find out exactly what is being reported on your credit reports. Every consumer is entitled to one free copy of your credit report every twelve months. There are several sites in which you can obtain a free report. It can either be printed from your computer, saved as a PDF file, or even mailed directly to you. Once you have the report in hand circle every item listed whether it be positive or negative. For example, a positive item would be; Current Pays As Agreed. A negative item might look like; Collection/Charged Off, or Paying Late 30 days.

Now that you have the report it is time to dissect each reportable item to ensure that it is reporting as favorably as possible for you. Start with the negatives, and start disputing those negative items for accuracy. As a consumer you are afforded protection by “The Fair Credit Reporting Act” and “The Truth in Lending Act.” What that essentially means to your score is that if you dispute a negative item, challenging its accuracy, the credit bureaus and creditors themselves have up to 30 days to investigate. If they are unable to complete their investigation or communicate their findings to you that item must be removed. Eventually when it is removed it is usually done so permanently. Dispute letters can be challenges to the creditor directly, a collection agency that purchased your debt, and the three credit bureaus. Removing negative items traditionally increases your score.

The third thing to do is to strengthen your “Utilization Ratio.” Utilization measures how much revolving credit you are utilizing versus how much credit is being extended to you by the credit card companies. A solid utilization ratio can positively impact your credit score greatly because it demonstrates responsibility in managing credit. Use only about 30% of your potential credit. So, for example, if you have a credit card with a $1,000 limit emphasize not using more than $300. Effectively managing your credit card balances will go a long way towards increasing your score.

Lastly, pay all of your bills on time and mix up your debt. Increase your diversity of debt by keeping a few credit cards open and active, while also maintaining an installment loan such as a car note, and a home mortgage. Hovever, the best way to increase your credit score by 100 points is to PAY BILLS ON TIME!

What is Chapter 7? Chapter 7 is a form of Bankruptcy protection known as a liquidation proceeding. All, or virtually all, property is turned over to a trustee to liquidate in an effort to repay your creditors. Upon doing so you will be free from having to pay off those debts and will no longer receive creditor calls or be forced to fight collection efforts. Be prepared for a severe negative impact on your credit score for a lengthy period of time, which could be upwards of 7 years.

Bad credit will end up costing you a fortune over the course of your lifetime. The cost to borrow money in the form of a mortgage, car, and credit cards, while suffering with a poor credit score, will end up costing you thousands of dollars. Each month that you utilize credit with high interest rates, you will essentially be throwing money in the garbage. Rebuild your credit score, lower your interest rates, save more money in your pocket.